Workforce Workforce Development Development

Benchmark ProjectBenchmark ProjectMinnesota State Colleges and Minnesota State Colleges and

UniversitiesUniversities

Presented byPresented by

Kathy YeagerKathy Yeager

Contract Training EdgeContract Training Edge

913-593-5347913-593-5347

kyeager@ctedge.netkyeager@ctedge.net

Benchmark StudyBenchmark Study Best practices in workforce Best practices in workforce

development and contract development and contract training in Minnesotatraining in Minnesota

Surveyed 32 Colleges and Surveyed 32 Colleges and UniversitiesUniversities

Response rate was 62.5% with Response rate was 62.5% with 20 completing the survey20 completing the survey

Compare the results to the Compare the results to the national Benchmark Studynational Benchmark Study

Results are baseline for Results are baseline for processes and best practices processes and best practices

Who Participated?Who Participated? Alexandria Technical Alexandria Technical

CollegeCollege Central Lakes CollegeCentral Lakes College Century College, CE & CTCentury College, CE & CT Inver Hills Inver Hills Lake Superior CollegeLake Superior College Mesabi RangeMesabi Range Minneapolis Community Minneapolis Community

and Technical Collegeand Technical College MN State College-SE MN State College-SE

TechnicalTechnical MN State Comm. & TechMN State Comm. & Tech MN State U MoorheadMN State U Moorhead

North Hennepin CCNorth Hennepin CC Northland Community & Northland Community &

Technical CollegeTechnical College Pine Technical CollegePine Technical College Rainy River CCRainy River CC Ridgewater CollegeRidgewater College South Central CollegeSouth Central College St. Cloud Technical St. Cloud Technical

CollegeCollege St. Cloud State St. Cloud State

UniversityUniversity Vermilion CCVermilion CC Winona State UniversityWinona State University

The Benchmark ProcessThe Benchmark Process Similar survey of Similar survey of

National Workforce National Workforce Development Benchmark Development Benchmark Project was distributed Project was distributed via Survey Monkeyvia Survey Monkey

Responses tallied and Responses tallied and tables were createdtables were created

Analysis and comparison Analysis and comparison to national study beganto national study began

Result: Printed Result: Printed Benchmark Report and Benchmark Report and Conference Presentation Conference Presentation of findingsof findings

Major Findings - SalesMajor Findings - Sales Sales calls per week – 40% conduct 3-5 Sales calls per week – 40% conduct 3-5

and 35% conduct 1-2 per weekand 35% conduct 1-2 per week Nationally, 36.8% conduct 3-5 and 26.3% Nationally, 36.8% conduct 3-5 and 26.3%

conduct 6-8 sales calls per weekconduct 6-8 sales calls per week Proactive sales calls per week – 5 colleges Proactive sales calls per week – 5 colleges

are proactive on less than 10% of sales are proactive on less than 10% of sales calls, 5 colleges reported 25%-49% of calls, 5 colleges reported 25%-49% of sales calls, and 5 colleges reported 50%-sales calls, and 5 colleges reported 50%-74% of sales calls.74% of sales calls. Nationally, 32% conduct 50%-74% proactivelyNationally, 32% conduct 50%-74% proactively

Many colleges still reactive in sales callsMany colleges still reactive in sales calls

Major Findings - SalesMajor Findings - Sales

Sales call targetsSales call targets Human Resources – 85% -- nationally 68%Human Resources – 85% -- nationally 68% Training Director – 75% -- nationally 89%Training Director – 75% -- nationally 89% CEO – 65% -- nationally 63%CEO – 65% -- nationally 63%

Nationally, Solution Selling targeted Nationally, Solution Selling targeted the CEOthe CEO Greater buy inGreater buy in Larger contractsLarger contracts Top decision-makerTop decision-maker

How Colleges Got LeadsHow Colleges Got Leads

Referrals – 90% - Nationally 94.7%Referrals – 90% - Nationally 94.7% Response to marketing piece – 80% - Response to marketing piece – 80% -

Nationally 60%Nationally 60% Nationally other lead generatorsNationally other lead generators

Chamber lists – 57%Chamber lists – 57% College Representative gives the lead – 47%College Representative gives the lead – 47% Grant lead – 42%Grant lead – 42% Newspaper – 31%Newspaper – 31% Purchased list – 21%Purchased list – 21%

Vertical Markets and Vertical Markets and Close TimeClose Time

Top vertical marketsTop vertical markets Healthcare – 90% -- 66%Healthcare – 90% -- 66% Manufacturing – 80% -- 66%Manufacturing – 80% -- 66% Government – 50% -- 50%Government – 50% -- 50%

Length of time to close a Length of time to close a sale sale 3-4 weeks 35%3-4 weeks 35% 1-2 weeks 30%1-2 weeks 30% Nationally – 5-8 weeks 42%Nationally – 5-8 weeks 42% Nationally – 3-4 weeks 37%Nationally – 3-4 weeks 37%

FulfillmentFulfillment

DefinitionDefinition: Sales : Sales person finds the lead person finds the lead and when it closes, and when it closes, the lead is passed off the lead is passed off to a fulfillment team to a fulfillment team or person for or person for execution. The sales execution. The sales person may check person may check back in for back in for additional sales additional sales later.later.

80% of sales people 80% of sales people in MN complete the in MN complete the whole process from whole process from approach to delivery.approach to delivery.

Nationally, 52% of Nationally, 52% of colleges do not colleges do not complete the whole complete the whole process, and use process, and use some form of some form of fulfillment fulfillment assistance.assistance.

Fulfillment TeamFulfillment Team

ProsPros Frees the sales Frees the sales

staff to stay in the staff to stay in the field to make more field to make more salessales

Keeps all the Keeps all the paperwork and paperwork and date changing date changing away from the away from the sales staffsales staff

ConsCons Things may fall Things may fall

through the cracks through the cracks with the pass-off to with the pass-off to the fulfillment team.the fulfillment team.

The customer deals The customer deals with several people with several people instead of just one instead of just one point of contactpoint of contact

Additional Survey Additional Survey Comments Comments

on Fulfillmenton Fulfillment We pass off at the point when training We pass off at the point when training

occursoccurs We do have a logistics person who sets up We do have a logistics person who sets up

rooms, contracts, materials, etc.rooms, contracts, materials, etc. We don’t have a sales position. Our We don’t have a sales position. Our

customized training reps and department customized training reps and department directors handle the sales call and then directors handle the sales call and then turn it over to a trainerturn it over to a trainer

We handle through contract completion We handle through contract completion and instructor salary payments.and instructor salary payments.

Average Contract SizeAverage Contract Size MN average contract size is $1,000-$3,999-MN average contract size is $1,000-$3,999-

50%; followed by $4,000-$7,999 – 30%50%; followed by $4,000-$7,999 – 30% Nationally, 52% reported their average Nationally, 52% reported their average

contract sale to be $4,000 - $7,999.contract sale to be $4,000 - $7,999. This indicates colleges are selling individual This indicates colleges are selling individual

classes to small groups instead of bundling classes to small groups instead of bundling multiple classes for a long-term contract (one multiple classes for a long-term contract (one or more years)or more years)

NoteNote: MN has a faster close rate (3-4 weeks), : MN has a faster close rate (3-4 weeks), but closes smaller contracts ($1,000-$3,999)but closes smaller contracts ($1,000-$3,999)

Contract Training Top Contract Training Top Revenue Generator for the Revenue Generator for the

AreaArea When asked which three services When asked which three services

generate the most revenue, contract generate the most revenue, contract training was 100%, followed by public training was 100%, followed by public enrollment, 80% and on-line classes, 35%enrollment, 80% and on-line classes, 35% Nationally, contract training was 100%, Nationally, contract training was 100%,

public enrollment classes were 52% and on-public enrollment classes were 52% and on-line courses came in at 21%line courses came in at 21%

Minnesota and the national survey had the Minnesota and the national survey had the same responses to this question on the same responses to this question on the surveysurvey

Net Revenue Goal for CTNet Revenue Goal for CT

Definition of Net Revenue – Revenue left Definition of Net Revenue – Revenue left after expenses are taken outafter expenses are taken out

Net revenue goal for MN was $100,000 Net revenue goal for MN was $100,000 or more – 40%, followed by $75,000 - or more – 40%, followed by $75,000 - $99,999 – 20% $99,999 – 20%

The college expected this annual net The college expected this annual net revenue from the Center.revenue from the Center.

Nationally, the response was the same—Nationally, the response was the same—61.1% had expectations of $100,000 or 61.1% had expectations of $100,000 or more annual net revenuemore annual net revenue

% Revenue Generated by % Revenue Generated by CTCT

MN institutions had 35% report that MN institutions had 35% report that 25%-49% of revenue was generated by 25%-49% of revenue was generated by contract training.contract training.

MN also reported 30% for 50%-74% MN also reported 30% for 50%-74% came from contract training.came from contract training.

Nationally, 42% indicated 50%-74% of Nationally, 42% indicated 50%-74% of total revenue was generated from total revenue was generated from contract trainingcontract training Note: MN collects less money from contract Note: MN collects less money from contract

training than national institutionstraining than national institutions

% Revenue from Open % Revenue from Open EnrollEnroll

MN reported that 0%-24% was MN reported that 0%-24% was generated by open enrollment generated by open enrollment classes (45%)classes (45%)

Nationally, 52.6% indicated the Nationally, 52.6% indicated the smallest portion (0%-24%) came smallest portion (0%-24%) came from open enrollment classesfrom open enrollment classes Note: Typically open enrollment Note: Typically open enrollment

classes are not a large revenue classes are not a large revenue generator for the collegegenerator for the college

Top ProductsTop Products

MinnesotaMinnesota Leadership – 65%Leadership – 65% Microsoft – 60%Microsoft – 60% Certificate Programs – Certificate Programs –

55%55% Lean Manufacturing – Lean Manufacturing –

50%50% Customer Service – Customer Service –

35%35% IT Courses – 35%IT Courses – 35%

NationwideNationwide Leadership – 68.4%Leadership – 68.4% Microsoft – 52.6%Microsoft – 52.6% Customer Service – Customer Service –

42.1%42.1% IT Courses – 31.6%IT Courses – 31.6% Lean Manufacturing – Lean Manufacturing –

31.6%31.6%

Top Soft Skills and Top Soft Skills and Computer ClassesComputer Classes

Most demanded soft Most demanded soft skills classesskills classes Change – Change – 70%70%/57%/57% Conflict – Conflict – 70%70%/57%/57% Presentation Skills – Presentation Skills –

0%0%/52.6%/52.6% Coaching – Coaching – 0%0%/47.4%/47.4% Performance Reviews Performance Reviews

– – 0%0%/47.4%/47.4% Time Management – Time Management –

55%55%/0%/0%

Most demanded Most demanded computer classescomputer classes Excel – Excel – 75%75%/89.5%/89.5% Word – Word – 65%/65%/63.2%63.2% Access – Access – 0%/0%/52.6%52.6% PowerPoint – PowerPoint –

50%/50%/0%0%

StatisticsStatistics

Top customers came from Healthcare Top customers came from Healthcare and Manufacturing. This was true for and Manufacturing. This was true for MN and nationallyMN and nationally

In MN, 75% reported both the Center In MN, 75% reported both the Center and external consultants own the and external consultants own the curriculum. Nationally, 72.2% of curriculum. Nationally, 72.2% of institutions owninstitutions own

Referrals was the #1 lead generator Referrals was the #1 lead generator both for MN and institutions nationallyboth for MN and institutions nationally

Instructor StatisticsInstructor Statistics

Hourly rate for soft skills instructor was Hourly rate for soft skills instructor was $50-$74 per hour – 40%; nationally 42.1%$50-$74 per hour – 40%; nationally 42.1%

Computer instructors were paid $25-$49 Computer instructors were paid $25-$49 per hour – 35%; nationally, $50-$75 per per hour – 35%; nationally, $50-$75 per hour (52.6%)hour (52.6%)

80% do not use full-time trainers; 80% do not use full-time trainers; nationally, 84%nationally, 84%

If full-time trainers were used, they were If full-time trainers were used, they were paid $25-$50 per hour – 66%paid $25-$50 per hour – 66%

Measuring ImpactMeasuring Impact

MN Institutions responded with 55% not MN Institutions responded with 55% not measuring return on investment, and measuring return on investment, and 45% who were measuring.45% who were measuring.

Nationally, 68% of institutions were Nationally, 68% of institutions were measuringmeasuring

94% of MN Colleges used Level 1 94% of MN Colleges used Level 1 evaluationsevaluations

MN Institutions did administer a pre- and MN Institutions did administer a pre- and post-test before and after training. Same post-test before and after training. Same results nationally.results nationally.

Selling Credit Selling Credit

80% of the colleges sold credit contract 80% of the colleges sold credit contract training. Nationally the response was 68.4%training. Nationally the response was 68.4%

The dollar volume for CT for credit per year The dollar volume for CT for credit per year was $30,000 or more. Same response was $30,000 or more. Same response nationally.nationally.

Credit courses sold as CT included classes Credit courses sold as CT included classes for Manufacturing, Healthcare, Business and for Manufacturing, Healthcare, Business and Computer Information Services. The top Computer Information Services. The top classes nationally were Business and classes nationally were Business and Computer Information Services.Computer Information Services.

MarketingMarketing

Marketing targets the Marketing targets the HR and Training HR and Training Director Director

Over 50% don’t/can’t Over 50% don’t/can’t track marketingtrack marketing

Colleges use direct mail, Colleges use direct mail,

e-mail blasts, radio, trade e-mail blasts, radio, trade shows, chamber events, shows, chamber events, website, chotzkeys and TVwebsite, chotzkeys and TV Recommend looking at Recommend looking at

social media for social media for marketingmarketing

Revenue, Profit, Retained Revenue, Profit, Retained Revenue Cost Recovery and Revenue Cost Recovery and

other termsother terms No uniformity of understanding for No uniformity of understanding for

financial terms across the nationfinancial terms across the nation Most college administrators have Most college administrators have

expectations of “making a profit” for the expectations of “making a profit” for the workforce development areaworkforce development area

Majority of sales departments had annual Majority of sales departments had annual retained revenue goals of $100,000 or moreretained revenue goals of $100,000 or more

Pricing becomes difficult when trying to Pricing becomes difficult when trying to serve the community and still make a profitserve the community and still make a profit

Colleges surveyed sold between $1M to Colleges surveyed sold between $1M to $10M in their workforce development area$10M in their workforce development area

Revenue ProjectionsRevenue Projections

This Fiscal YearThis Fiscal Year $500,000 - $1Million $500,000 - $1Million

(40%)(40%) Less than $500,000 Less than $500,000

(35%)(35%) Nationally, in 2006, Nationally, in 2006,

respondents indicated respondents indicated 52.6% would 52.6% would experience $1 million - experience $1 million - $2 million of sales $2 million of sales success for the team success for the team that fiscal year.that fiscal year.

In Three YearsIn Three Years $500,000 - $1 Million $500,000 - $1 Million

(40%)(40%) $1 Million - $2 Million $1 Million - $2 Million

(30%)(30%) Nationally, in 2006, Nationally, in 2006,

respondents had a respondents had a vision for $1 Million - vision for $1 Million - $2 Million (44.4%) $2 Million (44.4%) and up to $7 Million and up to $7 Million or more (24%).or more (24%).

If Resources Weren’t An If Resources Weren’t An Issue..Issue..

MinnesotaMinnesota Increase marketing (staff Increase marketing (staff

and materials) 10 out of and materials) 10 out of 2020

Improve processes 5 out Improve processes 5 out of 20of 20

Develop specialty areasDevelop specialty areas Develop on-line trainingDevelop on-line training More sales and support More sales and support

staffstaff Customer management Customer management

systemsystem

NationwideNationwide More sales people More sales people

(68.4%)(68.4%) Better leads (52.6%)Better leads (52.6%) Better marketingBetter marketing

What Keeps You From What Keeps You From “Running It Like a “Running It Like a

Business”?Business”? Faculty contractsFaculty contracts State policies and proceduresState policies and procedures MnSCU accounting, registration systemMnSCU accounting, registration system Lack of resources (staff, center, Lack of resources (staff, center,

infrastructure)infrastructure) Better business operating toolsBetter business operating tools More and timelier marketingMore and timelier marketing Lack of specific institution supportLack of specific institution support Disagree: Do run it “like a business”Disagree: Do run it “like a business”

What Holds Workforce What Holds Workforce Development Areas Back?Development Areas Back?

Internal systemsInternal systems Inflexibility of Inflexibility of

college systemcollege system Working in a Working in a

academic academic atmosphereatmosphere

Lack of top level Lack of top level supportsupport

Processes and Processes and policiespolicies

PoliticsPolitics

Innovative Things Done Innovative Things Done toto

Create More BusinessCreate More Business Partnered with other Partnered with other sister institutions to sell sister institutions to sell programs that are programs that are already developedalready developed

Interactive online Interactive online trainingtraining

MJSP grants have helped MJSP grants have helped to develop capacityto develop capacity

Collaborated with Collaborated with academic departments to academic departments to provide degree and provide degree and licensure programs off-licensure programs off-campuscampus

Work with Master(s) Work with Master(s) programs to provide programs to provide graduate level students to graduate level students to work on projectswork on projects

We received a $1.9M We received a $1.9M advanced manufacturing advanced manufacturing grantgrant

Development of a Development of a strategic college-wide strategic college-wide business outreach plan business outreach plan with college with college administration, academic administration, academic areas and college areas and college foundationfoundation

More InnovationMore Innovation

Mobile medical simulation labMobile medical simulation lab Build in-house capacity to produce video Build in-house capacity to produce video

training and high-end online trainingtraining and high-end online training Listens to industry needs and develop Listens to industry needs and develop

programsprograms Use of online open enrollment classesUse of online open enrollment classes We are breaking down the program silos We are breaking down the program silos

and having a more integrated approach to and having a more integrated approach to sellingselling

Conferencing and InstitutesConferencing and Institutes

Why Companies Use Your Why Companies Use Your

Center vs. Another Center vs. Another VendorVendorMinnesotaMinnesota

Quality of instructors Quality of instructors (95%)(95%)

Quality of programs Quality of programs (90%)(90%)

Cost (75%)Cost (75%) Convenience (70%)Convenience (70%)

NationwideNationwide Cost (89.5%)Cost (89.5%) Quality of instructors Quality of instructors

(84.2%)(84.2%) Quality of programs Quality of programs

(84.2%)(84.2%)

Other Key FindingsOther Key Findings Companies use the Companies use the

community college because community college because of cost, quality of instructors of cost, quality of instructors and customized curriculumand customized curriculum

Institutions wished their Institutions wished their sales team had more staff sales team had more staff and better leadsand better leads

Most colleges attempt to run Most colleges attempt to run the workforce development the workforce development area like a business in an area like a business in an academic atmosphere. Few academic atmosphere. Few are successful.are successful.

““Run it Like a Business”Run it Like a Business”

Of those colleges successfully “running it like Of those colleges successfully “running it like a business in an academic atmosphere”:a business in an academic atmosphere”: Upper management full support Upper management full support Proper fundingProper funding Reporting structure to the PresidentReporting structure to the President Full board supportFull board support CE billing system not tied to the college billing CE billing system not tied to the college billing

systemsystem No boundaries for sales callsNo boundaries for sales calls Pay bonuses to sales staffPay bonuses to sales staff Try to be entrepreneurialTry to be entrepreneurial

Do You “Run It Like A Do You “Run It Like A Business”?Business”?

Minnesota Best PracticesMinnesota Best Practices Conduct 3-5 sales calls per Conduct 3-5 sales calls per

weekweek Target viable vertical markets Target viable vertical markets

of Healthcare, Manufacturing of Healthcare, Manufacturing and Governmentand Government

Takes 3-4 weeks to close a sale. Takes 3-4 weeks to close a sale. The national average was 5-8 The national average was 5-8 weeksweeks

Offers similar top products to Offers similar top products to national survey—Leadership, national survey—Leadership, Microsoft, LeanMicrosoft, Lean

Utilizes referrals to obtain Utilizes referrals to obtain leadsleads

More Best PracticesMore Best Practices

Offers pre- and post-assessments before Offers pre- and post-assessments before and after the trainingand after the training

Sells credit contract training, and meets Sells credit contract training, and meets the national average of $30,000the national average of $30,000

Can operate in multi-county locationsCan operate in multi-county locations Organization state-wide of MnSCU Organization state-wide of MnSCU Personal development and state-wide Personal development and state-wide

training programs available for Colleges training programs available for Colleges and Institutionsand Institutions

National Best Practices National Best Practices for Salesfor Sales

Working in vertical marketsWorking in vertical markets Selling both credit and non-creditSelling both credit and non-credit Doing more consulting instead of Doing more consulting instead of

selling classesselling classes Utilizing a fulfillment team after the Utilizing a fulfillment team after the

salesale Commission PlansCommission Plans Solution SellingSolution Selling

More Best Practices in More Best Practices in SalesSales

E-Newsletter sent monthly to E-Newsletter sent monthly to targeted segmentstargeted segments

Pass lead to program developer Pass lead to program developer Get leads from the college presidentGet leads from the college president Sales staff comes from business Sales staff comes from business

backgroundbackground Flexibility of credit and non-credit Flexibility of credit and non-credit

for the customersfor the customers

Customer Service Best Customer Service Best PracticesPractices

Fast response timeFast response time Customer focusedCustomer focused ““No” isn’t in No” isn’t in

vocabularyvocabulary Clearly communicateClearly communicate Strive for high Strive for high

repeat ratiorepeat ratio Reward customers Reward customers

with luncheon, with luncheon, awards, or ball gameawards, or ball game

Potential Growth Areas Potential Growth Areas for Minnesota Colleges for Minnesota Colleges

and Univ.and Univ. Increase number of proactive sales Increase number of proactive sales

calls to customers.calls to customers. Approach higher level decision-Approach higher level decision-

makers in a companymakers in a company Increase the size of contracts soldIncrease the size of contracts sold Sell more contract trainingSell more contract training Perhaps raise the computer Perhaps raise the computer

instructor paymentsinstructor payments

Potential Growth AreasPotential Growth Areas

Consider relooking at the fulfillment Consider relooking at the fulfillment processprocess

Look at eMarketingLook at eMarketing Establish and grow a marketing Establish and grow a marketing

processprocess

Next StepsNext Steps Position the Minnesota Position the Minnesota

Colleges and Universities to be Colleges and Universities to be ready when the economy shifts ready when the economy shifts upward.upward.

Be ready to meet the needs of Be ready to meet the needs of companies receiving Stimulus companies receiving Stimulus MoneyMoney

Examine the current Examine the current marketing practices and marketing practices and investigate eMarketing and investigate eMarketing and Social MediaSocial Media

Continue to grow the sales Continue to grow the sales staff with proper training, staff with proper training, coaching and processescoaching and processes

Next StepsNext Steps

Be clear on college expectations for your Be clear on college expectations for your areaarea

Set financial goals for the Workforce Set financial goals for the Workforce Development Area and for the Sales StaffDevelopment Area and for the Sales Staff

Measure Return On Investment (ROI)Measure Return On Investment (ROI) Determine how you are better and Determine how you are better and

different from the competition, and use different from the competition, and use your Unique Selling Proposition dailyyour Unique Selling Proposition daily

Have fun on the journey!Have fun on the journey!

For More InformationFor More Information

Kathy YeagerKathy Yeager

Contract Training EdgeContract Training Edge

913-593-5347 913-593-5347 kyeager@ctedge.netwww.ctedge.net

Specializing in:Specializing in:

Solution Selling WorkshopsSolution Selling Workshops

Benchmarking Benchmarking

Sales CoachingSales Coaching